The deal announced Tuesday brings together two key suppliers in the semiconductor industry to create a leader in advanced process materials, contamination control, and wafer handling, Entegris said.

The company expects the acquisition to result in annual cost savings of about $30 million and immediately boost its adjusted earnings per share. It plans to fund the all-cash deal with a combination of existing cash and additional debt.

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The deal remains subject to regulatory and shareholder approvals, along with other customary closing conditions.

Under the terms of the agreement, Entegris will pay $34 in cash for each ATMI share. The price represents a 26 percent premium over the company’s Monday closing stock price.

The companies said the deal was worth about $850 million net of cash acquired, including the net cash proceeds from the sale of ATMI’s LifeSciences business of $170 million.

Also on Tuesday, Entegris announced better-than-expected fourth-quarter results.

Entegris earned $23.1 million, or 17 cents per share, up from $11.3 million, or 8 cents per share, in the same quarter of 2012. Excluding one-time items, the company said it earned 18 cents per share.

Revenue rose 11 percent to $186.3 million from $167.8 million.

Analysts, on average, expected a profit of 13 cents per share on $170.4 million in revenue, according to FactSet.

For its first quarter, the company projected an adjusted profit of 10 cents to 14 cents per share on $165 million to $180 million in revenue. Analysts expect earnings of 14 cents per share on $172.8 million in revenue.